In most negotiations, it feels good when the offer that a negotiating party makes is accepted rather than rejected. Nonetheless, in some cases, rejection can lead to acceptance. The contrast principle displays how people can make what they want others to do more attractive by comparing it to another alternative, which is less appealing. In a sensible application, the principle of contrast can be applied in practically all negotiation settings.
Negotiation is a soft skill that is used to produce desired outcomes or present alternative viewpoints. There are different principles, such as the contrast principle that are applied in a negotiating setting. The contrast principle is crucial because it provides an alternative view and better outcome for the negotiating parties (Dicker, 2000). This is to say that, instead of taking hard stands or giving in to the requirements of the other negotiating party, an alternative solution that is acceptable and beneficial to all parties can be found. Using this approach changes an otherwise bitter or undesired outcome to a more pleasant and acceptable one (Fuhr, 2015). Notably, this kind of approach helps the different negotiating players to all come out on top as winners (McCord, 2014). It is agreeable to many negotiating parties that contrast is a valid negotiation principle. It builds trust and gives confidence to the present negotiating partner and any other future persons who may be in a similar position.
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Consequently, there are two approaches that Sharon can use in her next meeting with Alice concerning her performance at Netflix. Sharon scenario one: "Alice, the firm has made major restructuring to improve its on-demand performance in the next six months. Although you have been a great contributor to the firm's overall performance, your current skill-set may drag you and the firm behind for the next phase. Please accept our rich severance package as you ponder on the next step that you would like to take to advance your career." This approach points out the weakness in Alice's current skills but does not punish her for it. The firm instead offers a package that will aide in her advancement of skills or allows her to use her current expertise elsewhere in the market without shocking her income flow. This vacancy enables the firm to source for a more vibrant and skillful employee to meet the firm's objectives.
Sharon scenario two: "Alice, it is the firm's policy to continuously advance in innovation and technology to remain the top on-demand entertainer for our views. Your skills have helped the firm to achieve its objective in the last ten years, and this effort is highly commendable. However, the next phase will require a highly competitive spirited person and advanced innovative skills. Although you are a highly spirited person, your current skills may not keep up with the next phase of innovation that the firm requires for the next phase. This is why I recommend that you take advantage of the rich severance package that the firm has offered you to get your footing and advance the next phase of your career." This approach points out to Alice that her creative skills have lagged and are inappropriate for the current level that the firm is at. However, the firm provides Alice with a severance package that can change this lack of skill for her through further training. In the meantime, this vacancy can be filled with a highly skilled and innovative person.
In summary, the contrast principle can be applied to help Sharon and Alice attain an integrative result. In this case, Sharon's two approaches can be used in the next meeting with Alice concerning her performance. The first approach shows weaknesses in the current skills of Alice but does not punish her for it, while the second approach depicts that Alice's creative skills have lagged. Her creative skills are inappropriate for the firm's present level; nevertheless, the firm offers Alice a severance package that can improve her skills. All these approaches bring a win-win result.
References
Dicker, L. (2000). Making negotiation happen: A simple and effective guide to negotiating success . Kuala Lumpur: Synergy Media
Fuhr, M., (2015). The woman behind the Netflix culture Doc. First Round Review. https://medium.com/@madsfuhr/the-woman-behind-the-netflix-culture-doc-536e36a58747 .
McCord, P. (2014). How Netflixreinvented HR. Harvard Business Review , 92 (1), 71-76.
